Point Topic

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Strategies for rural broadband The need for
radical action Tim Johnson, Chief Analyst, Point
Topic NextGen 2010 Broadband in the Rural
Economy 23 November 2010
www.point-topic.com
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Three points today

• Rural areas need broadband more than urban areas
• The rural-urban digital divide is growing
• Radical action is needed to reverse this trend
• By local communities, from the region to the
  village
• By national government, to change the rules so
  rural broadband can work

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Rural areas need broadband more

• Improve access to resources
• Leisure, work, health, education, security,
  government
• Reduce environmental costs
• Avoid commuting and other journeys
• Support the shift from physical to virtual
• Make it easier to earn a living
• Remote working for ordinary people
• Create the economic foundation for viable
  communities

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Rural areas are falling behind

• The gap is widening as bandwidth needs increase
• Superfast broadband is the new target
• Greater distances and lower population densities
  make it hard to finance
• Our infrastructure index measures the gap
• Takes the average of 6 speed-related indicators
  of broadband coverage
• Rural areas behind urban on every one
• Rural scores 25, urban 67 overall

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Rural is far behind on all infrastructure measures
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And there isntenough money
.

• There is already a huge gap in the quality of
  broadband infrastructure between areas.
• Unless there is significant public intervention
  the gap will get worse.
• The 530m provided by the Spending Review is
  nowhere near enough.
• We need to rebalance investment priorities in
  favour of broadband

Diagram shows Point Topics Broadband
Infrastructure Index band for each local
authority, the darker the better.
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Radical action is needed by communities

• Local pride, enthusiasm and JFDI are just the
  start
• Only investment based on a working business model
  will deliver a lasting fit-for-purpose service
• Go a step beyond the given -
• Create the business case

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Creating the business case

• Many different parties will benefit
• Who will contribute to the cost?
• Foundation customers? Environmental funds?
  Developers and property owners? Infrastructure
  builders?
• The case for investment must be made
• Good data is one requirement here is where
  Point Topic can help
• But government needs to change the rules so rural
  broadband can work

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Drilling down from the region to the village to
find the most left-behind areas
Drilling down 1 Derbyshire Dales has low
take-up 35.6
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Drilling down 2 find and select the lowest MSOA
32.4 take-up
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Drilling down 3 next, 003D is the lowest
take-up LSOA 28.2
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Drilling down 4 one COA is a total notspot with
zero broadband
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Drilling down 5 demographic make-up of the
notspot COA
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Radical action is needed four tasks for
government

• Help the broadband business case to leverage
  wider community benefits
• Provide some investment certainty
• So that investment now is not gazumped by big
  players a few years ahead
• A railway model - bidding for area franchises to
  minimise gap funding?
• Tackle the absurdities of the fibre tax
• Legislate for information transparency

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Tim Johnson, Chief Analyst, Point
Topic tim.johnson_at_point-topic.com 020 3301 3303
www.point-topic.com